ABSTRACT

Customer focus on supply management is made for special purpose to improve the
product and marketing function for consumer satisfaction. This project titled A Study on
supply chain Management aims to identify the communication needs of supply chain
management to increase supplier performance and to improve and gain better control of
supply chain management. The study has been conducted at AVR Manufacturers. A
survey was conducted with 130 respondents in the company by using questionnaire to
collect the informations from the respondents.
This project throws on the needs for learning buying behavior for successful marketing.
This project was developed based on benefits of sales towards organization. It will be
helpful for the management to identify the needs and benefits of the buyer and to take
decision-making to promote marketing status. This project can be base for the students
who are doing the project in the related area and to the organization in viewing the worth
of the buyer and attitude of the buying decision making.
This project also aims to know about how many people to get aware about AVR
Manufacturers, to find the competitors and analyze the methods for competition
marketing, to know many people to purchase AVR Manufacturers in market, to get
suggestion from public for further improvement and to know the main Customer and the
factor that satisfies them.
Based on the analysis, the researcher has given some suggestions to the management to
develop customer focus on supply chain management. Also SCM helps the management
to reduce the logistics cost and proper utilization of warehouse space.
The main suggestion given by the company is that they can improve their brand image in
the presence of customer by demonstration and they have to improve their supply chain
process for an effective utilization of warehouse space.
 TABLE OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO.

I INTRODUCTION

II COMPANY PROFILE

2.1 Industry Profile

2.2 Company Profile

III REVIEW OF LITERATURE

IV RESEARCH METHODOLOGY

4.1 Statement of the problem

4.2 Need for the study

4.3 Objectives of the study

4.4 Scope of the study

4.5 Research Design

4.6 Limitation of the study

4.7 Methods used for the Study

V DATA ANALYSIS AND INTERPRETATION

VI FINDINGS

VII SUGGESTIONS

VIII CONCLUSION

IX ANNEXURE

BIBLIOGRAPHY

BALANCESHEET
 TABLE CONTENTS

SLNO CONTENTS PAGE NO.

Supply chain management having all the address of the
1
developer branches of the company

2 The working strategies of supply chain management

department on the basis of the current programs

3 The supply chain management department is having

sufficient transportation

4 According to the current growth process of the

organization, the following needs much attention and

progress to boost the production

5 Supply chain department is facing problem in taking

care of the raw material

6 Delivery activity of the department

7 Any case recorded by the supply chain department in

which the production department complained late

delivery of raw materials

8 Experience of the company in operation

9 The company plans to launch new

10 Plans in place to increase company revenue

Company in managing its supply chain
11

12 Steps taken by the company for managing the supply

chain better
13 System which is used to support supply chain

management

14 System which is used to implement in near future

Satisfaction of current public policy regarding scm
15
Products without any damage
16
Awareness of the new / promotional schemes provided
17
by the avr manufacturers
Retailers opinion about service which is offered by avr
18
manufacturers
Try with a new service provider, if offered with
19
discount
Current performance expectation
20
Products delivery status to the supplier
21
Products delivery status to the supplier
22
Availability of AVR manufacturers in the market
23
Suppliers performance
24
Friendly behaviour of suppliers with the customers
25
Goods tracking
26
Company has the own logistics
27
Distribution network of the company
28
Effectiveness of supply chain in the company
29
Chi- Square
30
Weighted Average
31
Karl Pearsons Correlation
32
 CHART CONTENTS

SLNO CONTENTS PAGE NO.

Supply chain management having all the address of the
1
developer branches of the company

2 The working strategies of supply chain management

department on the basis of the current programs

3 The supply chain management department is having

sufficient transportation

4 According to the current growth process of the

organization, the following needs much attention and

progress to boost the production

5 Supply chain department is facing problem in taking

care of the raw material

6 Delivery activity of the department

7 Any case recorded by the supply chain department in

which the production department complained late

delivery of raw materials

8 Experience of the company in operation

9 The company plans to launch new

10 Plans in place to increase company revenue

Company in managing its supply chain
11

12 Steps taken by the company for managing the supply

chain better
13 System which is used to support supply chain

management

14 System which is used to implement in near future

Satisfaction of current public policy regarding scm
15
Products without any damage
16
Awareness of the new / promotional schemes provided
17
by the avr manufacturers
Retailers opinion about service which is offered by avr
18
manufacturers
Try with a new service provider, if offered with
19
discount
Current performance expectation
20
Products delivery status to the supplier
21
Products delivery status to the supplier
22
Availability of AVR manufacturers in the market
23
Suppliers performance
24
Friendly behaviour of suppliers with the customers
25
Goods tracking
26
Company has the own logistics
27
Distribution network of the company
28
Effectiveness of supply chain in the company
29
 CHAPTER- I
1.0 INTRODUCTION

1.1 INTRODUCTION

Supply Chain Management (SCM) is the process of planning, implementing,

and controlling the operations of the supply chain as efficiently as possible. Supply Chain
Management spans all movement and storage of raw materials, work-in-process
inventory, and finished goods from point-of-origin to point-of-consumption.

Supply Chain Management encompasses the planning and management of all

activities involved in sourcing, procurement, conversion, and logistics management
activities. Importantly, it also includes coordination and collaboration with channel
partners, which can be suppliers, intermediaries, third-party service providers, and
customers.

In essence, Supply Chain Management integrates supply and demand

management within and across companies. A supply chain is a network of facilities and
distribution options that performs the functions of procurement of materials,
transformation of these materials into intermediate and finished products, and the
distribution of these finished products to customers. Supply chains exist in both service
and manufacturing organizations, although the complexity of the chain may vary greatly
from industry to industry and firm to firm.

Below is an example of a very simple supply chain for a single product, where
raw material is procured from vendors, transformed into finished goods in a single step,
and then transported to distribution centers, and ultimately, customers. Realistic supply
chains have multiple end products with shared components, facilities and capacities. The
flow of materials is not always along an arborescent network, various modes of
transportation may be considered, and the bill of materials for the end items may be both
deep and large.
 Traditionally, marketing, distribution, planning, manufacturing, and the
purchasing organizations along the supply chain operated independently. These
organizations have their own objectives and these are often conflicting. Marketing's
objective of high customer service and maximum sales dollars conflict with
manufacturing and distribution goals.

Many manufacturing operations are designed to maximize throughput and lower

costs with little consideration for the impact on inventory levels and distribution
capabilities. Purchasing contracts are often negotiated with very little information beyond
historical buying patterns.

The result of these factors is that there is not a single, integrated plan for the
organization---there were as many plans as businesses. Clearly, there is a need for a
mechanism through which these different functions can be integrated together. Supply
chain management is a strategy through which such integration can be achieved.

Supply chain management is typically viewed to lie between fully vertically

integrated firms, where the entire material flow is owned by a single firm and those
where each channel member operates independently. Therefore coordination between the
various players in the chain is key in its effective management.

Cooper and Ellram [1993] compare supply chain management to a well-balanced

and well-practiced relay team. Such a team is more competitive when each player knows
how to be positioned for the hand-off. The relationships are the strongest between players
who directly pass the baton, but the entire team needs to make a coordinated effort to win
the race.

Supply Chain Decisions

We classify the decisions for supply chain management into two broad categories
-- strategic and operational. As the term implies, strategic decisions are made typically
over a longer time horizon. These are closely linked to the corporate strategy (they
sometimes {\it are} the corporate strategy), and guide supply chain policies from a design
perspective. On the other hand, operational decisions are short term, and focus on
activities over a day-to-day basis. The effort in these type of decisions is to effectively
and efficiently manage the product flow in the "strategically" planned supply chain.

There are four major decision areas in supply chain management: 1) location,
2) production, 3) inventory, and 4) transportation (distribution), and there are both
strategic and operational elements in each of these decision areas.

Location Decisions

The geographic placement of production facilities, stocking points, and sourcing

points is the natural first step in creating a supply chain. The location of facilities
involves a commitment of resources to a long-term plan. Once the size, number, and
location of these are determined, so are the possible paths by which the product flows
through to the final customer.

These decisions are of great significance to a firm since they represent the basic
strategy for accessing customer markets, and will have a considerable impact on revenue,
cost, and level of service. These decisions should be determined by an optimization
routine that considers production costs, taxes, duties and duty drawback, tariffs, local
content, distribution costs, production limitations, etc. (See Arntzen, Brown, Harrison and
Trafton [1995] for a thorough discussion of these aspects.) Although location decisions
are primarily strategic, they also have implications on an operational level.

Production Decisions
The strategic decisions include what products to produce, and which plants to
produce them in, allocation of suppliers to plants, plants to DC's, and DC's to customer
markets. As before, these decisions have a big impact on the revenues, costs and
customer service levels of the firm. These decisions assume the existence of the facilities,
but determine the exact path(s) through which a product flows to and from these
facilities.
 Another critical issue is the capacity of the manufacturing facilities--and this
largely depends the degree of vertical integration within the firm. Operational decisions
focus on detailed production scheduling. These decisions include the construction of the
master production schedules, scheduling production on machines, and equipment
maintenance. Other considerations include workload balancing, and quality control
measures at a production facility.

Inventory Decisions
These refer to means by which inventories are managed. Inventories exist at every
stage of the supply chain as either raw materials, semi-finished or finished goods. They
can also be in-process between locations. Their primary purpose to buffer against any
uncertainty that might exist in the supply chain.
Since holding of inventories can cost anywhere between 20 to 40 percent of their value,
their efficient management is critical in supply chain operations. It is strategic in the
sense that top management sets goals.

However, most researchers have approached the management of inventory from

an operational perspective. These include deployment strategies (push versus pull),
control policies --- the determination of the optimal levels of order quantities and reorder
points, and setting safety stock levels, at each stocking location. These levels are critical,
since they are primary determinants of customer service levels.

Transportation Decisions
The mode choice aspect of these decisions is the more strategic ones. These are
closely linked to the inventory decisions, since the best choice of mode is often found
by trading-off the cost of using the particular mode of transport with the indirect cost
of inventory associated with that mode.

While air shipments may be fast, reliable, and warrant lesser safety stocks, they
are expensive. Meanwhile shipping by sea or rail may be much cheaper, but they
necessitate holding relatively large amounts of inventory to buffer against the inherent
uncertainty associated with them. Therefore customer service levels, and geographic
location play vital roles in such decisions.

Since transportation is more than 30 percent of the logistics costs, operating

efficiently makes good economic sense. Shipment sizes (consolidated bulk shipments
versus Lot-for-Lot), routing and scheduling of equipment are key in effective
management of the firm's transport strategy.

Supply Chain Modeling Approaches

Clearly, each of the above two levels of decisions require a different perspective.
The strategic decisions are, for the most part, global or "all encompassing" in that they try
to integrate various aspects of the supply chain. Consequently, the models that describe
these decisions are huge, and require a considerable amount of data.

Often due to the enormity of data requirements, and the broad scope of decisions,
these models provide approximate solutions to the decisions they describe. The
operational decisions, meanwhile, address the day to day operation of the supply chain.
Therefore the models that describe them are often very specific in nature. Due to their
narrow perspective, these models often consider great detail and provide very good, if not
optimal, solutions to the operational decisions.

To facilitate a concise review of the literature, and at the same time attempting to
accommodate the above polarity in modeling, we divide the modeling approaches into
three areas --- Network Design, ``Rough Cut" methods, and simulation based methods.
The network design methods, for the most part, provide normative models for the more
strategic decisions.

These models typically cover the four major decision areas described earlier, and
focus more on the design aspect of the supply chain; the establishment of the network and
the associated flows on them. "Rough cut" methods, on the other hand, give guiding
policies for the operational decisions. These models typically assume a "single site" (i.e.,
ignore the network) and add supply chain characteristics to it, such as explicitly
considering the site's relation to the others in the network.

A simulation method is a method by which a comprehensive supply chain model

can be analyzed, considering both strategic and operational elements. However, as with
all simulation models, one can only evaluate the effectiveness of a pre-specified policy
rather than develop new ones. It is the traditional question of "What If?" versus "What's
Best?".

Rough Cut Methods

These models form the bulk of the supply chain literature, and typically deal with
the more operational or tactical decisions. Most of the integrative research (from a supply
chain context) in the literature seems to take on an inventory management perspective. In
fact, the term "Supply Chain" first appears in the literature as an inventory management
approach.

The thrust of the rough cut models is the development of inventory control
policies, considering several levels or echelons together. These models have come to be
known as "multi-level" or "multi-echelon" inventory control models. For a review the
reader is directed to Vollman et al. [1992].

Multi-echelon inventory theory has been very successfully used in industry.

Cohen et al. [1990] describe "OPTIMIZER", one of the most complex models to date to
manage IBM's spare parts inventory. They develop efficient algorithms and sophisticated
data structures to achieve large scale systems integration.

Although current research in multi-echelon based supply chain inventory

problems shows considerable promise in reducing inventories with increased customer
service, the studies have several notable limitations. First, these studies largely ignore the
production side of the supply chain.
 Their starting point in most cases is a finished goods stockpile, and policies are
given to manage these effectively. Since production is a natural part of the supply chain,
there seems to be a need with models that include the production component in them.

Second, even on the distribution side, almost all published research assumes an
arborescence structure, i. e. each site receives re-supply from only one higher level site
but can distribute to several lower levels. Third, researchers have largely focused on the
inventory system only. In logistics-system theory, transportation and inventory are
primary components of the order fulfillment process in terms of cost and service levels.

Therefore, companies must consider important interrelationships among

transportation, inventory and customer service in determining their policies. Fourth, most
of the models under the "inventory theoretic" paradigm are very restrictive in nature, i.e.,
mostly they restrict themselves to certain well known forms of demand or lead time or
both, often quite contrary to what is observed. The preceding sections are a selective
overview of the key concepts in the supply chain literature. Following is a list of
recommended reading for a quick introduction to the area.

Supply chain management is a cross-function approach including managing the

movement of raw materials into an organization, certain aspects of the internal processing
of materials into finished goods, and the movement of finished goods out of the
organization and toward the end-consumer. As organizations strive to focus on core
competencies and becoming more flexible, they reduce their ownership of raw materials
sources and distribution channels.

These functions are increasingly being outsourced to other entities that can
perform the activities better or more cost effectively. The effect is to increase the number
of organizations involved in satisfying customer demand, while reducing management
control of daily logistics operations. Less control and more supply chain partners led to
the creation of supply chain management concepts. The purpose of supply chain
management is to improve trust and collaboration among supply chain partners, thus
improving inventory visibility and the velocity of inventory movement.
 Several models have been proposed for understanding the activities required to
manage material movements across organizational and functional boundaries. SCOR is a
supply chain management model promoted by the Supply Chain Council. Another model
is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain
activities can be grouped into strategic, tactical, and operational levels. The CSCMP has
adopted The American Productivity & Quality Center (APQC) Process Classification
FrameworkSM a high-level, industry-neutral enterprise process model that allows
organizations to see their business processes from a cross-industry viewpoint.

Organizations increasingly find that they must rely on effective supply chains, or
networks, to compete in the global market and networked economy. In Peter Drucker's
(1998) new management paradigms, this concept of business relationships extends
beyond traditional enterprise boundaries and seeks to organize entire business processes
throughout a value chain of multiple companies.

During the past decades, globalization, outsourcing and information

technology have enabled many organizations, such as Dell and Hewlett Packard, to
successfully operate solid collaborative supply networks in which each specialized
business partner focuses on only a few key strategic activities (Scott, 1993). This inter-
organizational supply network can be acknowledged as a new form of organization.

However, with the complicated interactions among the players, the network
structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear
what kind of performance impacts different supply network structures could have on
firms, and little is known about the coordination conditions and trade-offs that may exist
among the players.

From a systems perspective, a complex network structure can be decomposed into

individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply
network concentrate on the inputs and outputs of the processes, with little concern for the
internal management working of other individual players. Therefore, the choice of an
internal management control structure is known to impact local firm performance
(Mintzberg, 1979).
 In the 21st century, changes in the business environment have contributed to the
development of supply chain networks. First, as an outcome of globalization and the
proliferation of multinational companies, joint ventures, strategic alliances and business
partnerships, significant success factors were identified, complementing the earlier "Just-
In-Time", Lean Manufacturing and Agile manufacturing practices.

Second, technological changes, particularly the dramatic fall in information

communication costs, which are a significant component of transaction costs, have led to
changes in coordination among the members of the supply chain network (Coase, 1998).

Many researchers have recognized these kinds of supply network structures as a

new organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual
Corporation", "Global Production Network", and "Next Generation Manufacturing
System".

In general, such a structure can be defined as "a group of semi-independent

organizations, each with their capabilities, which collaborate in ever-changing
constellations to serve one or more markets in order to achieve some business goal
specific to that collaboration" (Akkermans, 2001).The security management system for
supply chains is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards
published jointly by ISO and IEC

Building on globalization and specialization, the term SCM 2.0 has been coined to
describe both the changes within the supply chain itself as well as the evolution of the
processes, methods and tools that manage it in this new "era". The growing popularity of
collaborative platforms is highlighted by the rise of TradeCards supply chain
collaboration platform which connects multiple buyers and suppliers with financial
institutions, enabling them to conduct automated supply chain finance transactions.

Web 2.0 is defined as a trend in the use of the World Wide Web that is meant to
increase creativity, information sharing, and collaboration among users. At its core, the
common attribute that Web 2.0 brings is to help navigate the vast amount of information
available on the Web in order to find what is being sought.
 It is the notion of a usable pathway. SCM 2.0 follows this notion into supply chain
operations. It is the pathway to SCM results, a combination of the processes,
methodologies, tools and delivery options to guide companies to their results quickly as
the complexity and speed of the supply chain increase due to the effects of global
competition, rapid price fluctuations, surging oil prices, short product life cycles,
expanded specialization, near-/far- and off-shoring, and talent scarcity.

SCM 2.0 leverages proven solutions designed to rapidly deliver results with the
agility to quickly manage future change for continuous flexibility, value and success. This
is delivered through competency networks composed of best-of-breed supply chain
domain expertise to understand which elements, both operationally and organizationally,
are the critical few that deliver the results as well as through intimate understanding of
how to manage these elements to achieve desired results.

Finally, the solutions are delivered in a variety of options, such as no-touch via
business process outsourcing, mid-touch via managed services and software as a service
(SaaS), or high touch in the traditional software deployment model.
 CHAPTER II

2.1 INDUSTRY PROFILE

Automobile Industry in India

History

The first car ran on India's roads in 1897. Until the 1930s, cars were imported
directly, but in very small numbers.

An embryonic automotive industry emerged in India in the 1940s. Mahindra &

Mahindra was established by two brothers as a trading company in 1945, and began
assembly of Jeep CJ-3A utility vehicles. Following the independence, in 1947, the
Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. However, the
growth was relatively slow in the 1950s and 1960s due to nationalisation and the license
raj which hampered the Indian private sector. Total restrictions for import of vehicles was
set and after 1970 the automotive industry started to grow, but the growth was mainly
driven by tractors, commercial vehicles and scooters. Cars were still a major luxury.
Eventually multinational automakers, such as, though not limited to, Suzuki and Toyota
of Japan and Hyundai of South Korea, were allowed to invest in the Indian market
ultimately leading to the establishment of an automotive industry in India. A number of
foreign firms also initiated joint ventures with Indian companies.

Automotive industry is the key driver of any growing economy. It plays a pivotal
role in country's rapid economic and industrial development. It caters to the requirement
of equipment for basic industries like steel, non-ferrous metals, fertilisers, refineries,
petrochemicals, shipping, textiles, plastics, glass, rubber, capital equipments, logistics,
paper, cement, sugar, etc. It facilitates the improvement in various infrastructure facilities
like power, rail and road transport. Due to its deep forward and backward linkages with
almost every segment of the economy, the industry has a strong and positive multiplier
effect and thus propels progress of a nation. The automotive industry comprises of the
automobile and the auto component sectors. It includes passenger cars; light, medium and
heavy commercial vehicles; multi-utility vehicles such as jeeps, scooters, motor-cycles,
three wheelers, tractors, etc; and auto components like engine parts, drive and
transmission parts, suspension and braking parts , electricals, body and chassis parts; etc.

In India, automotive is one of the largest industries showing impressive growth

over the years and has been significantly making increasing contribution to overall
industrial development in the country. Presently, India is the world's second largest
manufacturer of two wheelers, fifth largest manufacturer of commercial vehicles as well
as largest manufacturer of tractors. It is the fourth largest passenger car market in Asia as
well as a home to the largest motor cycle manufacturer. The installed capacity of the
automobile sector has been 9,540,000 vehicles, comprising 1,590,000 four wheelers
(including passenger cars) and 7,950,000 two and three wheelers. The sector has shown
great advances in terms of development, spread, absorption of newer technologies and
flexibility in the wake of changing business scenario.

The Indian automotive industry has made rapid strides since delicensing and
opening up of the sector in 1991. It has witnessed the entry of several new manufacturers
with the state-of-art technology, thus replacing the monopoly of few manufacturers. At
present, there are 15 manufacturers of passenger cars and multi-utility vehicles, 9
manufacturers of commercial vehicles, 16 of two/ three wheelers and 14 of tractor,
besides 5 manufacturers of engines. The norms for foreign investment and import of
technology have also been liberalised over the years for manufacture of vehicles. At
present, 100% foreign direct investment (FDI) is permissible under the automatic route in
this sector, including passenger car segment. The import of technology for technology up
gradation on royalty payment of 5% without any duration limit and lump sum payment of
USD 2 million is also allowed under automatic route in this sector. The Indian automotive
industry has already attained a turnover of Rs. 1,65,000 crore (34 billion USD) and has
provided direct and indirect employment to 1.31 crore people in the country.

The growths of Indian middle class, with increasing purchasing power, along
with strong macro-economic fundamentals have attracted the major auto manufacturers to
Indian market. The market linked exchange rate, well established financial market, stable
policy governance work and availability of trained manpower have also shifted new
capacities and flow of capital to the auto industry of India. All these have not only
enhanced competition in auto companies and resulted in multiple choices for Indian
consumers at competitive costs, but have also ensured a remarkable improvement in the
industry's productivity, which is one of the highest in Indian manufacturing sector.

The Department of Heavy Industry, under the Ministry of Heavy Industries and
Public Enterprises, is the main agency in India for promoting the growth and
development of the automotive industry. The department assists the industry in
achievement of its expansion plans through policy initiatives, suitable interventions for
restructuring of tariffs and trade, promotion of technological collaboration and up-
gradation as well as research and development. The department is also concerned with
the development of the heavy engineering industry, machine tools industry, heavy
electrical industry, industrial machinery, etc.

The automobile sector recorded growth of 13.56% in 2006-07. During the year
2007-08 (April-December), the industry decelerated at 3.49%. The automobile exports
crossed the US$ 1 billion mark in 2003-04 and increased to US$ 2.76 billion in 2006-07.
The industry exported 15% of its passenger car production in 2006-07, 10% of
commercial vehicles production, 26% three wheelers and 7% two wheelers. Similarly,
during the year 2006-07, the auto component industry continued its high growth path and
emerged as one of the fastest growing sector in Indian engineering industry by clocking
21% growth in output during the year. This industry crossed a total turnover of over US $
15 billion (Rs. 64,500 crore), with exports of US $ 2.9 billion (Rs. 12,643 crore) during
the year. Investment in the industry also grew by over Rs. 4500 crore during the year as
the industry continued to invest in capacity enhancements and new greenfield sites to
cope with the increasing demand. The auto component industrys export growth was 15%
in 2006-07. While, the total imports was US $ 3.3 billions (Rs. 14,644 crore). On the
quality and productivity front, auto component industry maintained its leadership with
more than 95% companies being certified as per the ISO 9000 system standards and more
than 70% of the companies are certified as per the ISO/TS 16949 standards. It has also
the distinction of having the maximum number of 11 Deming award winning companies.

In order to further accelerate and sustain advancements in the auto sector, the
department has undertaken several policy measures and incentives. The most important
being the announcement of the 'Auto Policy' of 2002, which aims to establish a globally
competitive automotive industry in India and double its contribution to the economy by
2010. The policy seeks to set out the direction of growth for the sector and promote R&D
therein so as to ensure continuous technology upgradation as well as building up of better
designing capacities. It emphasizes on low emission fuel auto technologies and
availability of appropriate auto fuels in order to take auto manufacturing to a self-
sustaining level. Broadly, the objectives of the auto policy are to:-

Exalt the sector as a lever of industrial growth and employment and to achieve a
high degree of value addition in the country
Emerge as a global source for auto components
Establish an international hub for manufacturing small, affordable passenger cars
and a key center for manufacturing tractors and two-wheelers in the world
Ensure a balanced transition to open trade at a minimal risk to the Indian economy
and local industry
Conduce incessant modernization of the industry and facilitate indigenous design,
research and development
Steer India's software industry into automotive technology
Assist development of vehicles propelled by alternate energy sources
Development of domestic safety and environmental standards at par with
international standards.

Another milestone in this field has been the launching of the National Automotive
Testing and R &D Infrastructure Project (NATRIP) which aims to create core global
competencies in automotive sector and facilitate its integration with the world economy.
It seeks to develop 'state-of -the- art' testing, validation and R& D infrastructure in the
country with a view to support the growth and development effort of the automotive
industry to reach international levels. NATRIP envisages setting up of world-class and
homologation facilities in India with a total investment of Rs. 1,718 crore within the three
automotive hubs of the country. These are:- Manesar in Northern India; Chennai in
Southern India; and Pune and Ahmednagar in Western India. The project largely aims at:-

Creating critically needed automotive testing and validation infrastructure to

enable the Government to usher in global vehicular safety, emission and
performance standards
Deepening of manufacturing in India by achieving high degree of value addition
and enhancing employment potential in the country
Facilitating convergence of India's strengths in IT and electronics with automotive
engineering
Enhancing India's global outreach in this sector by facilitating development and
mass production of high technology driven, affordable and globally acceptable
automotive products and by de-bottlenecking their exports and
Removing the crippling absence of basic product testing, validation and
development infrastructure for automotive industry.

Besides, the announcement of 'Automotive Mission Plan' for the period of 2006-
2016 is a major step taken to make India a global automotive hub. The Mission Plan aims
to make India emerge as the destination of choice in the world for design and
manufacture of automobiles and auto components, with output reaching a level of US$
145 billion (accounting for more than 10% of the GDP) and providing additional
employment to 25 million people by 2016. It envisages increase in production of
automotive industry from the current level of Rs. 169000 crore to reach Rs. 600000 crore
by 2016. The Mission seeks to oversee the development of the automotive industry, that
is, the present scenario of the sector, its broad role in the growth of national economy, its
linkages with other key facets of the economy as well as its future growth prospects. This
is involved in improving the automobiles in the Indian domestic market, providing world
class facilities of automotive testing and certification as well as ensuring a healthy
competition among the manufacturers at a level playing field.

The future challenges for the Indian auto industry in achieving the targets defined
in the Automotive Mission Plan would primarily consist of developing a supply base in
terms of technical and human capabilities, achieving economies of scale and lowering
manufacturing costs, as well as overcoming infrastructural bottlenecks. It also involves
stimulating domestic demand and exploiting export and international business
opportunities. In all these, the role of the Government is of facilitating infrastructure
creation, promoting the countrys capabilities, creating a favourable and predictable
business environment, attracting investments and promoting R&D. While, the role of
industry is primarily of designing and manufacturing products of world-class quality
standards, establishing cost competitiveness, improving productivity of both labour and
capital, achieving scale and R & D enhancing capabilities as well as showcasing Indias
products in potential markets.

All such initiatives indicate that the Indian automotive industry has been emerging
as a sunrise sector of the economy. It is not only meeting the growing domestic demands,
but also gradually increasing its penetration in the international markets. It has been
continuously restructuring itself and absorbing newer technologies in order to align itself
to the global developments and realize its potentialities. Endowed with several
advantages like low cost and high skill manpower; globally competitive auto-ancillary
industry; established testing and R & D centres; production of steel at lowest cost; etc.,
the industry provide immense investment opportunities. This has instilled confidence in
auto manufacturers to face international competition as well as improve quality standards
of vehicles with safety norms in the wake of rapidly increasing traffic. Various policy
incentives including time bound implementation of Automotive Mission Plan together
with establishment of world class testing, homologation and certification facilities would
ensure Indian automotive industry a distinct edge amongst the newly emerging
automotive destinations of the world.

The automotive industry in India is one of the larger markets in the world and
had previously been one of the fastest growing globally, but is now seeing flat or negative
growth rates.[1] India's passenger car and commercial vehicle manufacturing industry is
the sixth largest in the world, with an annual production of more than 3.9 million units in
2011.[2] According to recent reports, India overtook Brazil and became the sixth largest
passenger vehicle producer in the world (beating such old and new auto makers as
Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), grew
16 to 18 per cent to sell around three million units in the course of 2011-12. [3] In 2009,
India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South
Korea, and Thailand.[4] In 2010, India beat Thailand to become Asia's third largest
exporter of passenger cars.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7

million automotive vehicles were produced in India in 2010 (an increase of 33.9%),
making the country the second (after China) fastest growing automobile market in the
world in that year. According to the Society of Indian Automobile Manufacturers, annual
vehicle sales are projected to increase to 4 million by 2015, no longer 5 million as
previously projected.

The majority of India's car manufacturing industry is based around three clusters
in the south, west and north. The southern cluster consisting of Chennai is the biggest
with 35% of the revenue share. The western hub near Mumbai and Pune contributes to
33% of the market and the northern cluster around the National Capital Region
contributes 32%.[7] Chennai, with the India operations of Ford, Hyundai, Renault,
Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot
Citron is about to begin their operations by 2014. Chennai accounts for 60% of the
country's automotive exports.[8] Gurgaon and Manesar in Haryana form the northern
cluster where the country's largest car manufacturer, Maruti Suzuki, is based.[9] The
Chakan corridor near Pune, Maharashtra is the western cluster with companies like
General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes
Benz, Land Rover, Jaguar Cars, Fiat and Force Motors[10][11] having assembly plants in the
area. Nashik has a major base of Mahindra & Mahindra with a UV assembly unit and an
Engine assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of
the western cluster. Another emerging cluster is in the state of Gujarat with
manufacturing facility of General Motors in Halol and further planned for Tata Nano at
their plant in Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to
come up in Gujarat.[12] Kolkata with Hindustan Motors, Noida with Honda and Bangalore
with Toyota are some of the other automotive manufacturing regions around the country.
[13][14][15]

Emission norms
See also: Bharat Stage emission standards

In tune with international standards to reduce vehicular pollution, the central government
unveiled the standards titled 'India 2000' in 2000 with later upgraded guidelines as
'Bharat Stage'. These standards are quite similar to the more stringent European standards
and have been traditionally implemented in a phased manner, with the latest upgrade
getting implemented in 13 cities and later, in the rest of the nation. Delhi(NCR), Mumbai,
Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow,
Solapur, and Agra are the 13 cities where Bharat Stage IV has been imposed while the
rest of the nation is still under Bharat Stage III.

Exports

Mahindra Scorpio Jeep in service with the Italy's CNSAS.

India's automobile exports have grown consistently and reached $4.5 billion in 2009,
with United Kingdom being India's largest export market followed by Italy, Germany,
Netherlands and South Africa.[71] India's automobile exports are expected to cross $12
billion by 2014.[72]
According to New York Times, India's strong engineering base and expertise in the
manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of
manufacturing facilities of several automobile companies like Hyundai, Nissan, Toyota,
Volkswagen and Maruti Suzuki.[73]

In 2008, South Korean multinational Hyundai Motors alone exported 240,000 cars made
in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant
by 2011.[74] Similarly, US automobile company, General Motors announced its plans to
export about 50,000 cars manufactured in India by 2011.[75]

In September 2009, Ford Motors announced its plans to set up a plant in India with an
annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both
for the Indian market and for export.[76] The company said that the plant was a part of its
plan to make India the hub for its global production business. [77] Fiat Motors also
announced that it would source more than US$1 billion worth auto components from
India.[78]

A Tata Safari on display in Poznan, Poland.

In July 2010, The Economic Times reported that PSA Peugeot Citron was planning to
re-enter the Indian market and open a production plant in Andhra Pradesh with an annual
capacity of 100,000 vehicles, investing EUR 700M in the operation. [79] PSA's intention to
utilise this production facility for export purposes however remains unclear as of
December 2010. In 2009 India (0.23m) surpassed China (0.16m) as Asia's fourth largest
exporter of cars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by allowing
foreign carmakers 100% ownership of factories in India, which China does not allow.[4]

The Maruti Ertiga, a model exported by Maruti Suzuki India.

In recent years, India has emerged as a leading center for the manufacture of small cars.
Hyundai, the biggest exporter from the country, now ships more than 250,000 cars
annually from India. Apart from Maruti Exports' shipments to Suzuki's other markets,
Maruti Suzuki also manufactures small cars for Nissan, which sells them in Europe.
Nissan will also export small cars from its new Indian assembly line. Tata Motors exports
its passenger vehicles to Asian and African markets, and is in preparation to launch
electric vehicles in Europe in 2010. The firm is also planning to launch an electric version
of its low-cost car the Tata Nano in Europe and in the U.S. Mahindra & Mahindra is
preparing to introduce its pickup trucks and small SUV models in the U.S. market. Bajaj
Auto is designing a low-cost car for Renault Nissan Automotive India, which will market
the product worldwide. Renault Nissan may also join domestic commercial vehicle
manufacturer Ashok Leyland in another small car project. [80] While the possibilities are
impressive, there are challenges that could thwart future growth of the Indian automobile
industry. Since the demand for automobiles in recent years is directly linked to overall
economic expansion and rising personal incomes, industry growth will slow if the
economy weakens.[80]
Cars by Make

These are the companies that bring to us our dream machines. This is where it all starts
from; the bourgeoisie Maruti 800, the upmarket Astra, the stately Mercedes, the 'Indian'
Indica, the racy Hero Honda, the Tata truck and the rest.

Wend your way through the automobile companies, their history and product lines. Find
out hitherto unknown facts about the vehicles you use. Did you know that the Hindustan
Motors was the first vehicle manufacturing company to be set up in India? And it is the
same Hindustan Motors which manufactures both the sturdy Ambassador and the elegant
Lancer, in association with Mitsubishi of course.

We present information on all the manufacturers that are part of the Indian automobile
industry. Make this your one stop auto info bank.

Car Companies

Daewoo
Audi BMW
Chevrolet Motors

Force General
Fiat Ford
Motors Motors

Hindustan
Honda Hyundai Lamborghini
Motors

Maruti Mahindra Mitsubishi

Mercedes

Reva Rolls-Royce
Nissan Motor Porsche
Electric Motor

San Motors Skoda Tata Toyota

Volvo
Volkswagen
2.2 COMPANY PROFILE

ABOUT US
AVR Manufacturers established in the year 2003, with an immense industry
experience of 30 years, have achieved a prominent position in the manufacturing and
supplying of sheet metal components, pressed components and automotive components.
These encompass sheet metal parts, special type washer, precision sheet metal press
components, deep drawn components, and oil seal inner shells. Based on the latest
technology, these are widely used in industries such as Automobile, Automotive, and also
in other engineering firms.
With knowledge and expertise, AVR Manufacturers broadened its horizons into
manufacturing of automobile sheet metal components after surveying and studying both
technical and marketing aspects. Over the last 10 years, the company has achieved a
distinct place in the market. It has a strong and satisfying clientele.
We channel our endeavours towards achieving absolute customer satisfaction by
offering our clients with qualitative products. Our products, owing to its functionality,
durability, efficiency, and cost effectiveness are preferred by a wide list of clients across
India. In addition to exhibiting finest quality, our entire product range is competitively
priced, enabling us to earn immense credibility and faith of our valued clients.

OUR VISION
AVR Manufacturers' mission is to help our customers in providing high quality precision
components at competitive cost. When the reputation and success depend on consistency
and quality of products and services
Our products comprise certain features which have made us a preferred company to work
with. Some of the highlighting features are:
- Cost effective
- Long lasting service
- Well tested
- Made from premium quality raw material
- Rust resistant
 - Closely monitored by experienced professionals

Our products are available in different dimensions and designs. They are manufactured
from quality raw material and are technologically advanced. Some of the industries
where our products are used are:
- Automobile industries
- Textile machineries manufacturing
- General Engineering
- Electrical Panel manufacturing
- Transformer manufacturing
- Valves manufacturing
- Switch gear manufacturing
POLICY
To satisfy our clients, we consistently put our generous efforts to provide quality
range of components and timely services to our clients. We make use of latest technology
and advanced techniques to work effectively even in fluctuating market conditions.

Our cost-effective specialties with the help of latest technology, we manufacture

these components and panel boxes in most efficient manner. This helps us in efficient
utilization of recourses and manufacturing quality range of products. Further, this also
reduces the production cost and enables us to offer these products at highly competitive
prices.

Some of these facilities are :

- On Time Delivery (OTD)

- Efficient operations with economical machines

- Open cost system to customer

- Hour rates for work center Systematic cost evaluation

- Operation wise actual production timings

 - Wastage and scrap value deduction from cost

Customization :
With the help of our experienced team of professionals, we offer customization facility to
our clients. We manufacture these components and assemblies in various designs and
sizes to meet the specified requirements of our clients.
Quality Policy:
We have qualified people for inspection of components who keep a strict check on the
quality of the raw materials being procured as well as on the manufacturing process of
the products. Further, we ensure to check our products at various stage of manufacturing
like :
Raw Material test

Dimensional measurements during production

Hardness tests

Finished test like Plating & Powder coating

Final Inspection as per client requirements

OUR INFRASTRUCTURE :
With the support of our robust infrastructure, we successfully cater to the needs of our
reputed clients. Our sound infrastructure is spread over a vast area of 10,000 square feet,
which enables us to meet with the bulk of orders within set time frame.
Our well equipped Infrastructure includes the following machineries :
Lathe Machine

Welding Machine

Mechanical Power Presses

Surface Grinding machine

Fly Press
 Drilling Machine

Round bar/Pin cutting machine

Testing & inspection Equipment

PRODUCTS

Products Range : Product Features :

Sheet Metal Components for Long service life

Automotive industries Temperature resistant
Sheet metal assemblies Durable
Deep Drawn Parts Corrosion resistant
Pressed parts for Automotive Dimensionally accurate
industries Metallic Gaskets
Metal Inserts
Electrical Switch Parts
Automotive Jack Parts
Special type Washers
Fine Blanked Components
PRODUCT PHOTOS

CLIENTS:
As a customer-centric organization, we consistently strive hard to offer the finest quality
products at industry leading prices to our lients. To meet the unique needs of our clients,
we offer a highly customized range of automobile components. Based on our ethical
business policy, customized product range, transparent dealings, and ability to deliver any
size consignment within promised time frame, we have garnered a huge clientele.
CONTACT US
AVR MANUFACTURERS
72, 5th Cross Street,
Thiru-Vi-Ka Industrial Estate,
Guindy ,
Chennai.
Tamilnadu 600 032
Ph: 044 43322527
Info@avrmanufacturers.com
 CHAPTER-III
3.1 REVIEW OF LITERATURE

Supply chain management (SCM) is the process of planning, implementing, and

controlling the operations of the supply chain as efficiently as possible. Supply Chain
Management spans all movement and storage of raw materials, work-in-process
inventory, and finished goods from point-of-origin to point-of-consumption.

The definition one American professional association put forward is that Supply
Chain Management encompasses the planning and management of all activities involved
in sourcing, procurement, conversion, and logistics management activities. Importantly, it
also includes coordination and collaboration with channel partners, which can be
suppliers, intermediaries, third-party service providers, and customers. In essence, Supply
Chain Management integrates supply and demand management within and across
companies.

Some experts distinguish Supply Chain Management and logistics, while others
consider the terms to be interchangeable. Supply Chain Management is also a category of
software products. Supply chain event management (abbreviated as SCEM) is a
consideration of all possible occurring events and factors that can cause a disruption in a
supply chain. With SCEM possible scenarios can be created and solutions can be
planned.

Supply chain management problems

Supply chain management must address the following problems: Distribution

Network Configuration: Number and location of suppliers, production facilities,
distribution centers, warehouses and customers.

Distribution Strategy: Centralized versus decentralized, direct shipment, Cross

docking, pull or push strategies, third party logistics. Information: Integrate systems and
processes through the supply chain to share valuable information, including demand
signals, forecasts, inventory and transportation etc.

Inventory Management: Quantity and location of inventory including raw

materials, work-in-process and finished goods. Cash-Flow: Arranging the payment terms
and the methodologies for exchanging funds across entities within the supply chain.
Supply chain execution is managing and coordinating the movement of materials,
information and funds across the supply chain. The flow is bi-directional.

Milestone payments

Operational
Daily production and distribution planning, including all nodes in the supply
chain. Production scheduling for each manufacturing facility in the supply chain (minute
by minute). Demand planning and forecasting, coordinating the demand forecast of all
customers and sharing the forecast with all suppliers.

Sourcing planning, including current inventory and forecast demand, in

collaboration with all suppliers. Inbound operations, including transportation from
suppliers and receiving inventory.
Production operations, including the consumption of materials and flow of
finished goods. Outbound operations, including all fulfillment activities and
transportation to customers. Order promising, accounting for all constraints in the supply
chain, including all suppliers, manufacturing facilities, distribution centers, and other
customers.

Supply chain management

Organizations increasingly find that they must rely on effective supply chains, or
networks, to successfully compete in the global market and networked economy. In Peter
Drucker's (1998) management's new paradigms, this concept of business relationships
extends beyond traditional enterprise boundaries and seeks to organize entire business
processes throughout a value chain of multiple companies.

During the past decades, globalization, outsourcing and information technology

have enabled many organizations such as Dell and Hewlett Packard, to successfully
operate solid collaborative supply networks in which each specialized business partner
focuses on only a few key strategic activities (Scott, 1993).

This inter-organizational supply network can be acknowledged as a new form of

organization. However, with the complicated interactions among the players, the network
structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear
what kind of performance impacts different supply network structures could have on
firms, and little is known about the coordination conditions and trade-offs that may exist
among the players.

From a system's point of view, a complex network structure can be decomposed

into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a
supply network concentrate on the inputs and outputs of the processes, with little concern
for the internal management working of other individual players. Therefore, the choice of
internal management control structure is known to impact local firm performance
(Mintzberg, 1979).

In the 21st century, there have been a few changes in business environment that
have contributed to the development of supply chain networks. First, as an outcome of
globalization and proliferation of multi-national companies, joint ventures, strategic
alliances and business partnerships were found to be significant success factors,
following the earlier "Just-In-Time", "Lean Management" and "Agile Manufacturing"
practices.
 Second, technological changes, particularly the dramatic fall in information
communication costs, a paramount component of transaction costs, has led to changes in
coordination among the members of the supply chain network (Coase, 1998).

Many researchers have recognized these kinds of supply network structure as a

new organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual
Corporation", Global Production Network", and "Next Generation Manufacturing
System". In general, such a structure can be defined as "a group of semi-independent
organizations, each with their capabilities, which collaborate in ever-changing
constellations to serve one or more markets in order to achieve some business goal
specific to that collaboration" (Akkermans, 2001).

Andrew Cox, (1999) , Power, value and supply chain management, Explains some of the
thinking that informs both the case study articles that appear in the same issue of Supply
Chain Management: An International Journal and the EPSRC funded research project
currently being undertaken at the Centre for Business Strategy and Procurement. A
review is provided of the dominant ideas that currently inform supply chain
management thinking. This paradigm is characterised as operational effectiveness and
efficiency. A case is made for understanding supply chains from a strategic as well as
from an operational perspective. Current supply chain management thinking is criticised
for being atheoretical and descriptive, and a case is made for an analytical approach to
supply chain thinking based around the concepts of power and value appropriation. A
more analytically robust way of understanding supply chains is laid out.

Stephen J. New, (1997), The scope of supply chain management research, Advocates an
expanded scope for supply chain management research which accounts for the social
function and the political and economic implications of supply chain developments.
Argues that the research agenda must not be driven by the notion of efficiency alone, but
should also be developed around the concept of the just supply chain. Provides a
framework which sets out the range of issues which may contribute to this approach.
Believes that the objectives and ideological assumptions of research need to be open to
challenge and debate.

Kabossa A.B. Msimangira, (2003), Purchasing and supply chain management practices
in Botswana, Discusses supply chain management practices, with emphasis on
purchasing, in Botswana (a developing country). Focuses on problems facing business
operations and how to improve the situation. Presents the views of purchasing personnel
from public and private organizations and of students taking purchasing and supply chain
management courses. Discovers that purchasing has not been recognized as a profession,
which has led to lack of motivation in purchasing sections personnel. Further, purchasing
policies on external relationships and image are non-existent in most organizations.
Claims that managers need to change their thinking about the purchasing and supply
function to see it as strategic and not clerical; and purchasing and supplies personnel
require training in supply chain management.

Miguel Martinez Ramos, (2004), Interaction between management accounting and

supply chain management, Despite its importance in other disciplines and its rapid
proliferation in organizational practice, until recently supply chain management (SCM)
has had only a relatively modest impact on management accounting research. This
research note focuses on the potential role that management accounting information can
play in SCM. From an alternative point of view, a reverse impact of the supply chain
activities on management accounting (intra- and inter-firm) practices and uses can be
expected. Both perspectives are analysed in this paper.

Andrew Cox, (1999), A research agenda for supply chain and business management
thinking, Summarises the key learning points in supply and value chain mapping. It
demonstrates that there is no best way to manage supply chains. Concludes that the key to
success in business is based on recognising the types of supply chains that exist and
aligning strategy and operational practice with the specific properties of the supply chain
that the company is positioned within. It is argued that some supply chain structures do
not lend themselves to effective value appropriation, so that entrepreneurial rents may not
be achievable in all circumstances. It is argued, in conclusion, that this way of thinking
about supply chains and supply innovation referred to here as procurement and supply
competence is underdeveloped in business management thinking.

Chee Yew Wong, Jan Stentoft Arlbjrn, John Johansen, (2005), Supply chain
management practices in toy supply chains, Purpose Innovative products usually
experience highly unpredictable and variable demand. This is especially valid for the
volatile and seasonal toy industry, which produces high obsolete inventory, lost sales and
markdown. In such a volatile industry, what supply chain management (SCM) practices
are applicable and effective? This study seeks to explore SCM practices, and identify
practical and theoretical gaps in toy supply chains. Design/methodology/approach This
article includes a longitudinal and in-depth case study during the past year in an
international toy manufacturer, which includes qualitative semi-structured interviews and
questionnaire with 11 main European toy retailers.

Remko I. van Hoek, Robina Chatham, Richard Wilding, (2002) Managers in supply
chain management, the critical dimension, Attracting and educating the right supply chain
managers are a critical challenge to the realization of most supply chain objectives
irrespective of the state of the economy (shortage of personnel several months ago or
increasing lay-offs currently). This is because of the richness of capabilities required to
do the job well. Much of our teaching in logistics and supply chain management focuses
on the technical aspects of the role. However, the importance and criticality of the human
aspects are becoming increasingly apparent. A new approach to the people dimension is
called for. This paper uncovers a set of emotional capabilities, which, if combined with
the technical capability that is undoubtedly needed as well, would transform the industry.
One emotional capability, the ability to influence, is examined by way of illustrating what
we mean by emotional capability. Suggestions are offered for furthering managerial
capabilities in supply chain management.
Alain Halley, Martin Beaulieu, (2009), Mastery of operational competencies in the
context of supply chain management, Purpose According to the most recent theories,
the competitiveness of organizations is based on the development of competencies. Core
competencies result from greater mastery than competitors of organizational abilities
valued by customers. This paper seeks to investigate how a more thorough integration of
the supply chain may be associated with greater mastery of operational competencies.
Design/methodology/approach The study is based on a mail survey carried out among
Canadian manufacturing companies.

Joseph Sarkis, (2012), A boundaries and flows perspective of green supply chain
management, Purpose Managing the green (environmentally sustainable) supply chain
is an important issue for industry. This paper aims to provide a framework to understand
and appreciate the relationships of various research streams and topics in this field.
Utilizing this framework, emergent research directions to advance the field are also
presented. Design/methodology/approach Published research in peer-reviewed journals
is evaluated using a new framework of nine non-exclusive, interrelated boundaries and
five flows of resources related to green supply chains and supply chain management.
Findings The research literature can be integrated into these comprehensive
multidimensional frameworks, which also provide opportunities as vehicles for future
research. Research directions are described utilizing the framework presented in this
paper.

Damien Power, (2005), Supply chain management integration and implementation: a

literature review, Purpose The purpose of this paper is to review a sample of the
literature relating to the integration and implementation of supply chain management
practices from a strategic viewpoint. Design/methodology/approach The literature is
examined from three perspectives. First, supply chain integration covers issues relating to
integration of core processes across organizational boundaries through improved
communication, partnerships, alliances and cooperation. Second, strategy and planning
examines supply chain management as a strategic matter for trading partners, along with
factors relating to the amount of planning required. Third, implementation issues concern
factors critical for successful implementation, as well as issues specific to inter and intra-
organizational aspects of supply chain initiatives are contained in this sub-group

Stanley E. Fawcett, Gregory M. Magnan, Matthew W. McCarter, (2008), Benefits,

barriers, and bridges to effective supply chain management, Purpose The purpose of
this article is to provide academics and practitioners a quantitative and qualitative
analysis of the benefits, barriers, and bridges to successful collaboration in strategic
supply chains. Design/methodology/approach A triangulation method consisting of a
literature review, a cross-functional mail survey, and 51 in-depth case analyses was
implemented. Senior managers from purchasing, manufacturing, and logistics were
targeted in the mail survey. The break down by channel category interviews is as follows:
14 retailers, 13 finished goods assemblers, 12 first-tier suppliers, three lower-tier
suppliers, and nine service providers.

Uma V. Sridharan, W. Royce Caines, Cheryl C. Patterson, (2005), Implementation of

supply chain management and its impact on the value of firms, Purpose The purpose of
this research is to examine the effect of supply chain implementation issues on firm
value. Design/methodology/approach Using case study methodology, this paper
outlines the cases of Hershey and Nike and the impact of supply chain implementation
issues on these firms value. Findings Difficulties in the implementation of supply
chain management software designed to maximize firm value, can result in a disruption
of a firm's supply chain, causing losses for the firm and a decline in firm value; thereby
creating much disappointment for the firm's shareholders. Hence, great care should be
taken with the implementation of new SCM solutions.

Susan A. Sherer, (2005), From supply-chain management to value network advocacy:

implications for e-supply chains, Purpose To introduce a broader concept for supply-
chain management (SCM), the notion of value network advocacy.
Design/methodology/approach The historical roots and the traditional terms used to
describe SCM are explored to show how their meanings have led to specific types of
information systems to support SCM. The limitations of these systems are demonstrated
with case studies. Then the concept of value network advocacy is introduced to address
these limitations, and implications of this term are explored.

Jill E. Hobbs, (1996), A transaction cost approach to supply chain management,

Observes that supply chain management is a rapidly-evolving subject which offers many
insights into how industries are organized and into the efficiency gains which can be
made under different organizational structures, pointing out that it is an interdisciplinary
concept, drawing on aspects of marketing, economics, logistics, organizational behaviour,
etc. Presents a framework from the economics literature which may be useful for those
interested in understanding and exploring the concept of supply chain management.
Describes the origins and development of transaction cost analysis and explains the key
concepts of the framework. Discusses the potential effects of transaction costs on vertical
co-ordination within an industry and, hence, on supply chain management. Finally,
suggests methods for empiricizing transaction cost analysis, resulting in
recommendations for closer co-operation between researchers and business managers.

Paula M.G. van Veen-Dirks, Peter J.A. Verdaasdonk, (2009) "The dynamic relation
between management control and governance structure in a supply chain context",
Supply Chain Management: An International Journal, Vol. 14 Iss: 6, pp.466 478, The
dynamic relation between management control and governance structure in a supply
chain context, Purpose The purpose of this paper is to show that local management
control systems within supply chain organisations and the governance of supply chains
are intertwined and that local control systems and governance structure have an important
effect on the functioning of the supply chain. Design/methodology/approach The paper
reports on a case study of a supply chain and examines how local management control
systems within the participating organisations affect cooperation between the
organisations in the supply chain. In the case study, a supply chain, including eight food
manufacturers, two logistic service providers, and two retailers, is investigated.

Robert E. Spekman, John W. Kamauff Jr, Niklas Myhr, (1998), An empirical

investigation into supply chain management: a perspective on partnerships, States that we
have witnessed, over the last several years, a profound change in understanding the
dynamics of competitive advantage. Managers now acknowledge that a firms success is
tied, in part, to the strength of its weakest supply chain partner. This paper develops the
concept of supply chain management and argues that only through close collaborative
linkages through the entire supply chain, can one fully achieve the benefits of cost
reduction and revenue enhancing behaviors. Data are presented that look at a range of
supply chain management practices and processes. By examining differences in practices
and processes between buyers and sellers, along with the supply chain, attempts to
understand better the challenges facing managers who espouse supply chain
management. Also proposes a change in mind set for the traditional procurement manager
and present insights for him/her to adapt to the requirements of the new competition.

Natasha Wilson, (1996), Supply chain management: a case study of a dedicated supply
chain for bananas in the UK grocery market, Looks at the concept of supply chain
management, discussing the theory and its relevance to the distribution and marketing of
fresh produce. Vertical co-ordination has seen an accelerated introduction in the context
of UK food retailing and the major food retailers are increasingly demanding dedicated
supply as their influence grows. Looks at three main players: J Sainsbury, the second
largest UK grocery retailer; Mack Multiples, an operating division of M & W Mack, the
UKs largest privately-owned importer and distributor of fresh produce; and Noboa, a
major family-owned plantation business in Ecuador.

Gran Svensson, Hans Bth, (2008), Supply chain management ethics: conceptual
framework and illustration, Purpose The purpose of this paper is to describe a
conceptual framework of Supply Chain Management Ethics (SCM-ethics).
Design/methodology/approach The research is based upon a qualitative approach using
a series of semi-structured interviews. Multiple perspectives and respondents have been
applied in the data collection process. The study is limited to the Swedish vehicle
industry. Findings The empirical findings indicate that the corporate focus of SCM-
ethics is in part narrow in the Swedish vehicle industry. The partial focus may endanger
the corporate ethical performance in the long run, while the immediate one may not be
affected.
Ceren Atilgan, Peter McCullen, (2011) "Improving supply chain performance through
auditing: a change management perspective", Supply Chain Management: An
International Journal, Vol. 16 Iss: 1, pp.11 19, Improving supply chain performance
through auditing: a change management perspective, Quick scan audit methodology
(QSAM) has been adapted to include some change management practices. This paper
seeks to relate how the company's dissemination feedback presentation sessions and
implementation team-work added value to the established QSAM by: offering a new
method of demonstrating a listening ear to employees, providing enhanced verification
of the QS results, increasing buy in and offering the possibility of a deeper knowledge
transfer and increased audit accuracy.

Rao Tummala, Tobias Schoenherr, (2011), Assessing and managing risks using the
Supply Chain Risk Management Process (SCRMP), Purpose The purpose of this paper
is to propose a comprehensive and coherent approach for managing risks in supply
chains. Design/methodology/approach Building on Tummala et al.'s Risk Management
Process (RMP), this paper develops a structured and ready-to-use approach for managers
to assess and manage risks in supply chains. Findings Supply chain risks can be
managed more effectively when applying the Supply Chain Risk Management Process
(SCRMP). The structured approach can be divided into the phases of risk identification,
risk measurement and risk assessment; risk evaluation, and risk mitigation and
contingency plans; and risk control and monitoring via data management systems.
Specific techniques for conducting this process are suggested.

Bernd Huber, Edward Sweeney, (2007), The need for wider supply chain management
adoption: empirical results from Ireland, Purpose This paper aims to provide empirical
results which suggest that there is a need for more widespread adoption of supply chain
management among Irish firms. Design/methodology/approach The Republic of Ireland
is a small, open, trade-dependent economy and is one of the fastest growing economies in
the developed world. However, due to rising costs, there is an increasing trend in Ireland
to outsource lower function manufacturing processes to lower-cost locations but to retain
high-skill functions (such as R&D). This trend, together with other factors such as its
peripheral location, suggests that supply chain management is critical from an Irish
perspective. In order to gain unique insights of current levels of awareness/adoption of
SCM and the potential impact SCM could have on competitiveness, a survey was
conducted among 776 Irish firms.

Kevin McCormack, Marcelo Bronzo Ladeira, Marcos Paulo Valadares de Oliveira,

(2008), Supply chain maturity and performance in Brazil, Purpose The purpose of the
paper is to investigate the relationship between supply chain maturity and performance,
with specific references both to the business process orientation maturity model and to
the supply chain operation reference model. Design/methodology/approach
Quantitative, survey based research was carried out with 478 Brazilian companies.
Statistical analysis combined the use of descriptive statistics and structural equation
modeling. Findings Empirical results indicate a strong and positive statistical
relationship between supply chain maturity and performance. The results also suggest
that the deliver process maturity has a higher impact on overall performance than the
other supply chain processes.

Vinod Kumar, Kamel A. Fantazy, Uma Kumar, Todd A. Boyle, (2006),

Implementation and management framework for supply chain flexibility, Purpose The
purpose of this research is to develop a conceptual framework for implementing and
managing supply chain flexibility in supply chain organizations. The framework suggests
that supply chain flexibility should be implemented and managed using a three-stage
approach: required flexibility identification, implementation and shared responsibility,
and feedback and control. Design/methodology/approach The major components of the
proposed framework are based on a review of research in the manufacturing flexibility
literature as well as the limited research in supply chain flexibility. The strengths and
weaknesses of these frameworks, combined with a published empirical study were
analyzed to identify the important issues that must be considered when implementing and
managing supply chain flexibility, and those components that need to be incorporated
into a new integrated framework. Findings This framework was constructed by
synthesizing the strengths of other conceptual frameworks. As a result, the major
components of the framework are supported by the current research on the
implementation and management of manufacturing flexibility, as well as the current
literature on supply chain management.

B.S. Sahay, Vasant Cavale, Ramneesh Mohan, (2003), The Indian supply chain
architecture, With close to 22 percent of aggregate industry sales tied up in inventories in
the entire supply chain network, what is it that ails Indian industry? Is it the way Indian
supply chains are configured their orientation to processes to streamline business
activities; their fusion of information technology to speed up business transactions; their
approach to supply chain strategy to improve bottom line results that has restricted
them from achieving global standards? The article, based on a recently concluded
nationwide study titled Supply chain management practices in Indian Industry: 2000,
throws up glaring facts about the current architecture of supply chains in India. The
article concludes that though some Indian organizations are moving fast towards
improving supply chain efficiencies, most of them are still far from realising its effect on
business performance.

Yahia Zare Mehrjerdi, (2009), Excellent supply chain management, Purpose The
purpose of this paper is to review the fundamental concept of supply chain management
(SCM) and discusses the facts that a road to success in the process of design,
development, implementation and operation of a supply chain (SC) is the identification of
superior strategies and clear objectives. To understand important SC strategies for a
complete success, main strategies need to be identified. The literature of SC is filled with
a wide range of strategies applied successfully across various enterprises that reviewed
briefly in this paper. Design/methodology/approach The paper provides key strategies
of SCM, and discusses the fact that the vision for the excellent SCM can be built on
principles as such as speed, quality, cost, flexibility, quality leadership, customer focused,
collaboration, and integrated information system.
 CHAPTER IV
RESEARCH METHODOLOGY
4.1 PROBLEM STATEMENT

To find out the problems of customers in purchasing the product and to find the
solutions to overcome the problem in effective ways with user friendly.

To find the new solutions to improve the organisation's growth and increase the
customers.

The Consumer Supply Chain management is responsible to provide the products

to the customers without any damages. So the SCM should be maintain in
effective manner.
4.2 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE :

o To identify the communication needs of supply chain management.

o To increase supplier performance.
o To improve and gain better control of supply chain management.

SECONDARY OBJECTIVE:

o To analyze the various parameters that determines the choice of buyer in

AVR Manufacturers.
o To increase the role of technology in supply chain management.
o To analyze the effective utilization of warehouse space.
o To reduce the logistics cost saving.
o To check the receiving and handling materials in flow.
o To evaluate the performance of supplier.
4.3 NEED FOR THE STUDY

Customer focus on supply management is made for special purpose to improve the
product and marketing function for consumer satisfaction.

To know about how many people to get aware about AVR Manufacturers.
To find the competitors and analyze the methods for competition marketing.
How many people to purchase AVR Manufacturers in market.
To get suggestion from public for further improvement.
Who is the main Customer and which satisfies them?
4.4 SCOPE OF THE STUDY

The project throws on the needs for learning buying behavior for successful
marketing.

The project was developed based on benefits of sales towards organization.

It will be helpful for the management to identify the needs and benefits of the
buyer and to take decision-making to promote marketing status.

This project can be base for the students who are doing the project in the related
area and to the organization in viewing the worth of the buyer and attitude of the
buying decision making.
4.4 RESEARCH TYPE

Research in common parlance refers to a search for knowledge. One can also

define research as a scientific and systematic search for pertinent information on a

specific topic. In fact, research is an art of scientific investigation. Research is an

academic activity and as such the term should be used in a technical sense.

RESEARCH DESIGN

Research design is a conceptual structure with in which research is conducted. It

constituted the blue print for collection measurement and analysis of data. The type of

research design used is descriptive research. Descriptive research includes surveys and

fact finding enquiries of different kinds. The major purpose of descriptive research is

description of the state of affairs, as it exists at present.

TYPES OF DATA COLLECTED

Primary Data

Questionnaires are prepared and interview was conducted. Most of the questions
are consist of multiple choices. The questionnaires were conducted in English.
Generally 23 questions are prepared and asked to the customers.

Secondary Data

Secondary data was collected from Internets, various books, Journals, and
Company Records.
DEFINING THE POPULATIONS

The Population or Universe can be Finite or infinite. The population is said to be

finite if it consist of a fixed number of elements so that it is possible to enumerate it in its
totality. So In this projects consist of finite population.

4.5 SAMPLE DESIGN

The sample design is a defined plan determined before any data are actually

collected for obtaining a sample. A sample of 130 associates was selected from AVR

Manufacturers Users in Chennai.

FIELD WORK

The field works is done in AVR Manufacturers buyers as well as users, Chennai

PERIOD OF SURVEY

The period of survey is from

DESCRIPTION OF STATISTICAL TOOLS USED

Percentage Analysis

Correlation Analysis

Chi- Square Analysis

Anova
PERCENTAGE ANALYSIS:

In this project Percentage method test was used. The following are the formula

Percentage of Respondent = No of Respondent/ Total no. of Respondents x 100

SIMPLE CORRELATION:

In probability theory and statistics, correlation, also called correlation

coefficient, indicates the strength and direction of a linear relationship between two
random variables. In general statistical usage, correlation or co-relation refers to the
departure of two variables from independence.

Formula:

r= (X-Xi) (Y-Yi)
(X-Xi) 2 (Y-Yi) 2
Where
X- Reason for repurchase
Y-Preference of respondent

,
4.6 LIMITATIONS OF THE STUDY

Some of the limitations of the study were

o Some of the respondents were unwilling to fill the questionnaire due to the
fear of their personality being identified.

o Few responses could have been biased as the respondents might have been
influenced by the situation.
 CHAPTER V

5.0 DATA ANALYSIS AND INTERPRETATION

5.1 ANALYSIS AND INTERPRETATION

After data have been collected, the researcher turns to the task of analyzing them.
The analysis of data requires a number of closely related operations such as establishment
of categories, the application of these categories to raw data through tabulation and
drawing statically inferences.

Tabulation is the part of technical procedure where in the classified data are put in
the form of tables. After analyzing the data, the researcher should have to explain the
findings on the basis of some theory. It is known as interpretation.

The data has been collected from 130 clients of AVR Manufacturers, Chennai,
through questionnaire. The data thus collected was in the form of master table. That made
possible counting of classified data easy.

From the master table various summery tables were prepared. They have been
presented along with their interpretation in this manner.
TABLE 1: SUPPLY CHAIN MANAGEMENT HAVING ALL THE ADDRESS OF THE
DEVELOPER BRANCHES OF THE COMPANY
NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Yes 97 75
2 No 33 25
Total 130 100

CHART 1 SUPPLY CHAIN MANAGEMENT HAVING ALL THE ADDRESS

OF THE DEVELOPER BRANCHES OF THE COMPANY

INFERENCE
From the above chart it can be inferred that 75% of the respondents said yes that : supply
chain management having all the address of the developer branches of the company. Only
25% of the respondents said no that the supply chain management having all the address
of the developer branches of the company. Therefore most of the respondents said that the
supply chain management having all the address of the developer branches of the
company
Table 2: THE WORKING STRATEGIES OF SUPPLY CHAIN MANAGEMENT
DEPARTMENT ON THE BASIS OF THE CURRENT PROGRAMS

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Outstanding 43 33
2 Excellent 32 25
3 Good 22 17
4 Average 33 25
Total 130 100

Chart 2: THE WORKING STRATEGIES OF SUPPLY CHAIN MANAGEMENT

DEPARTMENT ON THE BASIS OF THE CURRENT PROGRAMS

INFERENCE:
From the above chart it can be inferred that 33% of the respondents are said that the
working strategies of supply chain management department on the basis of the current
programs is outstanding and 25% of the respondents said that the company the working
strategies of supply chain management department on the basis of the current programs is
excellent and only 17% of the respondents said that the company the working strategies
of supply chain management department on the basis of the current programs is good
TABLE 3 THE SUPPLY CHAIN MANAGEMENT DEPARTMENT IS HAVING
SUFFICIENT TRANSPORTATION
 S.NO PARTICULARS NO OF PERCENTAGE
RESPONDENTS
1 Yes 115 88
2 Not Sufficient 15 12
Total 130 100

CHART 3 THE SUPPLY CHAIN MANAGEMENT DEPARTMENT IS HAVING

SUFFICIENT TRANSPORTATION

INFERENCE:
From the above chart it can be inferred that 75% of the respondents said yes that the
company has the sufficient transportation in SCM department. Only 25% of the
respondents said no the company has the sufficient transportation in SCM department.
Therefore most of the respondents said that the company has the sufficient transportation
in SCM department

TABLE 4 ACCORDING TO THE CURRENT GROWTH PROCESS OF THE

ORGANIZATION, THE FOLLOWING NEEDS MUCH ATTENTION AND
PROGRESS TO BOOST THE PRODUCTION
 NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Operational activities 53 41
2 Tactical activities 43 33
Current programming
3 strategies 34 26
Total 130 100

CHART 4: ACCORDING TO THE CURRENT GROWTH PROCESS OF THE

ORGANIZATION, THE FOLLOWING NEEDS MUCH ATTENTION AND
PROGRESS TO BOOST THE PRODUCTION

INFERENCE:
From the above chart it can be inferred that 41% of the respondents are said according to
the current growth process of the organization, operational activities needs much
attention and progress to boost the production and 33% of the respondents said according
to the current growth process of the organization, tactical activities needs much attention
and progress to boost the production and only 26% of the respondents said that according
to the current growth process of the organization, current programming strategies needs
much attention and progress to boost the production
 TABLE 5: SUPPLY CHAIN DEPARTMENT IS FACING PROBLEM IN TAKING
CARE OF THE RAW MATERIAL
NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 During storage 21 16
2 Packaging 22 17
3 Testing of packaging 59 45
Evaluation of defective raw
4 material 28 22
TOTAL 130 100

CHART 5: SUPPLY CHAIN DEPARTMENT IS FACING PROBLEM IN TAKING

CARE OF THE RAW MATERIAL

INFERENCE:

From the above chart it can be inferred that 45% of the respondents are said testing of
packaging side the supply chain department is facing problem in taking care of the raw
material and 22% of the respondents said evaluation of defective raw material side the
supply chain department is facing problem in taking care of the raw material and only
16% of the respondents said that during storage the supply chain department is facing
problem in taking care of the raw material
TABLE 6 DELIVERY ACTIVITY OF THE DEPARTMENT
 NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Excellent 31 24
2 Very effective 22 17
3 Good 49 38
4 Average 28 21
TOTAL 100 100

CHART 6 DELIVERY ACTIVITY OF THE DEPARTMENT

INFERENCE:

From the above chart it can be inferred that 38% of the respondents are rating delivery
activity of the department is good.24% of the respondents are rating the delivery activity
of the department is excellent. Only 17% of the respondents rating the delivery activity
of the department is very effective. Therefore majority of the respondents of the
respondents are rating delivery activity of the department is good.
.TABLE 7 ANY CASE RECORDED BY THE SUPPLY CHAIN
DEPARTMENT IN WHICH THE PRODUCTION DEPARTMENT
COMPLAINED LATE DELIVERY OF RAW MATERIALS
 NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Yes 15 12
2 No 115 88
Total 130 100

CHART 7 ANY CASE RECORDED BY THE SUPPLY CHAIN

DEPARTMENT IN WHICH THE PRODUCTION DEPARTMENT
COMPLAINED LATE DELIVERY OF RAW MATERIALS

Inference:
From the above chart it can be inferred that 12% of the respondents said yes that there is
a case recorded by the supply chain department in which the production department
complained late delivery of raw materials . Only 88% of the respondents said no there is
a case recorded by the supply chain department in which the production department
complained late delivery of raw materials .Therefore most of the respondents said that the
there a case recorded by the supply chain department in which the production department
complained late delivery of raw materials.
TABLE 8 EXPERIENCE OF THE COMPANY IN OPERATION

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Less than 10years 53 41
 2 Less than 20years 43 33
3 More than 20years 34 26
Total 130 100

CHART 8 EXPERIENCE OF THE COMPANY IN OPERATION

Inference:
From the above chart it can be inferred that 41% of the respondents said that company
has been in operation less than 10 years 33% of the respondents said that company has
been in operation less than 20 years and 26% of the respondents said that company has
been in operation more than 20 years. Therefore most of the respondents said that of the
respondents said that company has been in operation less than 10 years.

TABLE 9 THE COMPANY PLANS TO LAUNCH NEW

PRODUCTS

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Yes 98 12
2 No 32 88
Total 130 100
CHART 9 THE COMPANY PLANS TO LAUNCH NEW PRODUCTS

INFERENCE:
From the above chart it can be inferred that 12% of the respondents said yes that the
company has the plan to launch the new products . Only 88% of the respondents said yes
that the company has the plan to launch the new products .Therefore most of the
respondents said that the company does not have the idea to launch the new product.

TABLE 10 PLANS IN PLACE TO INCREASE COMPANY REVENUE

NO OF
S.NO PARTICULARS RESPONDENTS PERCENTAGE
1 Yes 107 82
2 No 23 18
Total 130 100
CHART 10 PLANS IN PLACE TO INCREASE COMPANY REVENUE

INFERENCE:
From the above chart it can be inferred that 82% of the respondents said yes that the
company has plans in place to increase company revenue. Only 18% of the respondents
said no that the company has the plans in place to increase company revenue .Therefore
most of the respondents said that the company has the plans in place to increase
company revenue.

COMPANY IN MANAGING ITS SUPPLY CHAIN

TABLE-11
S.No Particulars No of Respondents Percentage
1. Very Successful 70 54
2. Successful 41 32
3. Somewhat 16 12
Successful
4. Not at all Successful 03 2
Total 130 100

CHART-11
INFERENCE:
From the above chart it can be inferred that 54% of the respondents said that company
managing its supply chain in very successful manner. 32% of the respondents of the
respondents said that company managing its supply chain in very successful manner and
only 2% of the respondents of the respondents said that company managing its supply
chain is not at all successful manner. Therefore most of the respondents said that
company successfully managing its supply chain.
TABLE-12 STEPS TAKEN BY THE COMPANY FOR MANAGING THE SUPPLY
CHAIN BETTER
S.No Particulars No of Respondents Percentage
1. Close partnership 42 32
with suppliers
2. Close partnership 43 33
with customers
3. Outsourcing 30 23
4. SupplyChain 15 12
Benchmarking
Total 130 100

CHART-12
INFERENCE:
From the above chart it can be inferred that 32% of the respondents said that Close
partnership with suppliers helps the company to manage its supply chain in a better way.
33% of the respondents said that Close partnership with customers helps the company to
manage its supply chain in a better way and only 15% of the respondents said that Supply
Chain Benchmarking helps the company to manage its supply chain in a better way.
Therefore most of the respondents said that company has to keep close relationship with
customers in order to manage its supply chain better.
 TABLE-13 SYSTEM WHICH IS USED TO SUPPORT SUPPLY CHAIN
MANAGEMENT
S.No Particulars No of Respondents Percentage
1. Material 27 21
Requirements
Planning (MRP)

2. Manufacturing 32 25
Resources Planning
(MRPII)

3. Enterprise Resource 26 20
Planning (ERP)
4. Supply Chain 45 34
Management (SCM)
Total 130 100
CHART-13

INFERENCE:
From the above chart it can be inferred that 34% of the respondents said that supply chain
management (scm) system which is used to support supply chain management. 25% of
the respondents said of the respondents said that Manufacturing Resources Planning
(MRPII) system which is used to support supply chain management and only 20% of the
respondents said that
Enterprise Resource Planning (ERP) system which is used to support supply chain
management. Therefore most of the respondents said that supply chain management
(scm) system which is used to support supply chain management.
 TABLE-14 SYSTEM WHICH IS USED TO IMPLEMENT IN NEAR FUTURE
S.No Particulars No of Respondents Percentage
1. Material 20 16
Requirements
Planning (MRP)
2. Manufacturing 32 24
Resources Planning
(MRPII)

3. Enterprise Resource 33 25
Planning (ERP)
4. Supply Chain 45 35
Management (SCM)
Total 130 100

CHART-14
INFERENCE:

From the above chart it can be inferred that 35% of the respondents said that
supply chain management (scm) system system which is used to implement in near
future. 25% of the respondents said of the respondents said that enterprise resource
planning (erp) system system which is used to implement in near future and only 16% of
the respondents said that material requirements planning (mrp)system which is used to
implement in near future.. Therefore most of the respondents said that supply chain
management (scm) system which is used to support supply chain management.
 SATISFACTION OF CURRENT PUBLIC POLICY REGARDING SCM
TABLE-15
S.No Particulars No of Respondents Percentage
1. Very Satisfied 76 59
2. Satisfied 42 32
3. Somewhat satisfied 9 7
4. Not at all Satisfied 03 2
Total 130 100

CHART-15
INFERENCE:
From the above chart it can be inferred that 59% of the respondents said that satisfaction
of current public policy regarding scm is very satisfied. 32% of the respondents of the
respondents satisfaction of current public policy regarding scm is satisfied and only 2%
of the respondents of the respondents said satisfaction of current public policy regarding
scm is not all satisfied. Therefore most of the respondents said that satisfaction of current
public policy regarding scm is very satisfied.

PRODUCTS WITHOUT ANY DAMAGE

TABLE-16
S.No Particulars No of Respondents Percentage
1. Yes 101 78
2. No 29 22
Total 130 100

CHART-16

INFERENCE:
From the above chart it can be inferred that 78% of the respondents said that they
receiving the product without any damage. 22% of the respondents of the respondents
said that they receiving the damaged products. Therefore most of the respondents said
that they receiving the product without any damage.

AWARENESS OF THE NEW / PROMOTIONAL SCHEMES PROVIDED BY

THE AVR MANUFACTURERS

TABLE-17
S.No Particulars No of Respondents Percentage
1. Yes 106 82
2. No 24 18
Total 130 100
CHART-17

INFERENCE:
From the above chart it can be inferred that 82% of the respondents said that they aware
of the new / promotional schemes provided by the AVR manufacturers.24% of the
respondents said that they aware of the new / promotional schemes provided by the AVR
manufacturers. Therefore most of the respondents said that they aware of the new /
promotional schemes provided by the AVR manufacturers.

RETAILERS OPINION ABOUT SERVICE WHICH IS OFFERED BY AVR

MANUFACTURERS
TABLE-18
S.No Particulars No of Respondents Percentage
1. Very Satisfied 44 34
2. Satisfied 52 40
3. Somewhat satisfied 34 26
4. Not at all Satisfied 0 0
Total 130 100

CHART-18
INFERENCE:
From the above chart it can be inferred that 34% of the respondents said that retailers
opinion about service which is offered by AVR manufacturers is very satisfied 40%
retailers opinion about service which is offered by AVR manufacturers is satisfied.
Therefore most of the respondents said that retailers opinion about service which is
offered by AVR manufacturers is very much satisfied
 TRY WITH A NEW SERVICE PROVIDER, IF OFFERED WITH DISCOUNT

TABLE-19
S.No Particulars No of Respondents Percentage
1. Yes 121 93
2. No 09 7
Total 130 100
CHART-19

INFERENCE:
From the above chart it can be inferred that 93% of the respondents said try with a new
service provider, if offered with discount. Only 7 % of the respondents said that try with a
new service provider, if offered with discount. Therefore most of the respondents said
that try with a new service provider, if offered with discount.
 CURRENT PERFORMANCE EXPECTATION
TABLE-20
S.No Particulars No of Respondents Percentage
1. Good 84 65
2. Above average 21 16
3. Below average 14 11
4. Poor 11 8
Total 130 100

CHART-20

INFERENCE:
From the above chart it can be inferred that 65% of the respondents said AVR
manufacturers meets their current performance expectation.16% of the respondents are
falls in to the category of above average . Only 11% of the respondents said that tavr
manufacturers are not meets their current performance expectation. Therefore most of the
respondents said that AVR manufacturers meets their current performance expectation.
PRODUCTS DELIVERY STATUS TO THE SUPPLIER

TABLE-21
S.No Particulars No of Respondents Percentage
1. Yes 124 95
2. No 06 5
Total 130 100

CHART-21

INFERENCE:
From the above chart it can be inferred that 95% of the respondents said Yes that the the
products are delivered on time to the supplier. Only 75% of the respondents said no that
the the products are delivered on time to the supplier. Therefore most of the respondents
said that the products are delivered on time to the supplier.

AVAILABILITY OF AVR MANUFACTURERS IN THE MARKET

TABLE-22
S.No Particulars No of Respondents Percentage
1. Yes 127 98
2. No 03 2
Total 130 100
CHART-22

Inference:
From the above chart it can be inferred that 98 % of the respondents said yes that the the
AVR manufacturers is available in the market . Only 2% of the respondents said no the
AVR manufacturers is available in market. Therefore most of the respondents said that
the AVR manufacturers is available in the market in a sufficient manner.

SUPPLIERS PERFORMANCE

TABLE-23

S.No Particulars No Of Respondents Percentage

1. Good 76 58
2. Above average 32 25
3. Below average 22 17
4. Poor 0 0
Total 130 100

CHART-23

INFERENCE:

From the above chart it can be inferred that 58% of the respondents are rating the supplier
performance is good.25% of the respondents are falls into the above average category.
Only 0% of the respondents rating that supplier performance is Poor. Therefore majority
of the respondents rating that supplier performance is good.

FRIENDLY BEHAVIOUR OF SUPPLIERS WITH THE CUSTOMERS

TABLE-24
S.No Particulars No of Respondents Percentage
1. Yes 79 61
2. No 51 39
Total 130 100

CHART-24
INFERENCE:
From the above chart it can be inferred that 61% of the respondents said yes that the
Supplier is friendly with the customers. Only 39% of the respondents said no Supplier is
friendly with the customers. Therefore most of the respondents said that Supplier is
friendly with the customers.

WAY OF ORDER PLACEMENT TO THE MEMBERS SUPPLY CHAIN

TABLE-25

S.No Particulars No Of Respondents Percentage

1. Phone 51 39
2. Web s ervice 49 38
3. Forecasting 14 11
4. Personal 16 12
Total 130 100
CHART-25

INFERENCE:

From the above chart it can be inferred that 39% of the respondents said Order placement
to the members supply chain is done by phone .38% of the respondents said Order
placement to the members supply chain is done by web services. Only 12% of the
respondents said Order placement to the members supply chain is done by Personal.
Therefore most of the respondents said that order placement to the member supply chain
is done through telephone.

GOODS TRACKING

TABLE-25

S.No Particulars No Of Respondents Percentage

1. Communication 63 49
channel
2. Web enabled system 37 28
3. GPRS system 30 23
Total 130 100
CHART-25

INFERENCE:

From the above chart it can be inferred that 49% of the respondents said Tracking of
goods is done by Communication channel .28% of the respondents said Tracking of
goods is done by web enabled system. Only 23% of the respondents said Tracking of
goods is done by GPRS. Therefore most of the respondents said that Tracking of goods is
done by Communication channel.

COMPANY HAS THE OWN LOGISTICS

TABLE-27
S.No Particulars No of Respondents Percentage
1. Yes 101 78
2. No 29 22
Total 130 100

CHART-27
INFERENCE:
From the above chart it can be inferred that 78% of the respondents said yes that the S
the company have its own logistics. Only 22% of the respondents said no the company
have its own logistics. Therefore most of the respondents said the company have its own
logistic.

DISTRIBUTION NETWORK OF THE COMPANY

TABLE-28

S.No Particulars No Of Respondents Percentage

1. Air ways 21 16
2. Water ways 26 20
3. Road ways 22 17
4. All of the above 61 47
Total 130 100
CHART-28

INFERENCE:
From the above chart it can be inferred that, 20% of the respondents said that the
Banglore operation company use the waterways distribution network and 17% of the
respondents said that the Banglore operation company use the roadways distribution
network but 47% of the respondents said that Banglore operation company use the all
types distribution channel.
EFFECTIVENESS OF SUPPLY CHAIN IN THE COMPANY

TABLE-29

S.No Particulars No Of Respondents Percentage

1. Timely deliver 30 23
2. Quality and cost 37 28
3. Availability of stock 39 30
4. Less damage of 16 13
goods
5. All the above 8 6
Total 130 100
CHART-29

INFERENCE:

From the above chart it can be inferred that, 23% of the respondents said that the
company follows timely deliver criteria for effectiveness of supply chain.28% of the
respondents said that the company follows quality and cost criteria for effectiveness of
supply chain and only lest no of respondents said that the company follow all the criteria
for the effectiveness of Supply chain. Therefore most of the respondents said that quality
and cost is the best criteria for the effectiveness of supply chain.
 STATISTICAL TOOLS

CHI-SQUARE

FORMULATION OF HYPOTHESIS:
H0: There is no significant relationship between the friendly behavior of the supplier
with the customers and the suppliers performance
H1: There is a significant relationship between the friendly behavior of the supplier with
the customers and the suppliers performance
 Behavior of the
Above
Supplier Good Below average Poor Total
Supplier average
Performance
Yes 57 9 13 0 79

No 19 23 9 0 51

Total 76 32 22 0 130

Row Total * Column Total

Expected Frequency =______________________________
Grand Total

S.No O E (O-E) (O-E)2 (O-E)2 /E

1 57 46.18 10.82 117.07 2.535
2 9 19.45 -10.45 109.20 0.524
3 13 13.37 -0.37 0.137 0.101
4 0 0 0 0 0
5 19 29.81 -10.81 116.86 3.920
6 23 12.55 10.45 109.20 0.813
7 9 8.63 0.37 3.19 0.370
8 0 0 0 0 0
TOTAL 8.263

CALCULATION:
Calculated Value = 8.263
Degree of Freedom = (r-1) * (c-1) = (2-1)*(4-1) =1*3=3
Degree of Freedom= 3
Tabulated Value = Total Value @ 5 % level of significance
= 7.815
CV > TV
8.263 > 7.815
 Hence, the Alternate hypothesis [H1] is accepted

INFERENCE:
Thus Chi-Square test infers that there is a significant relationship between the
friendly behavior of the supplier with the customers and the suppliers performance

WEIGHTED AVERAGE METHOD:

The weighted moving average is obtained on dividing the weighted moving total by the
sum of the weight.
=wixi/xi
A weight average with appropriate weight is generally used when the moving average are
strongly affected by extreme value.

EFFECTIVENESS OF SUPPLY CHAIN IN THE COMPANY

 Particulars W F Wf
Timely deliver 30 3 90
Quality and cost 37 2 74
Availability of stock 39 1 39
Less damage of goods 16 4 64
All the above 8 5 40
Total 130 307

Weighted average=wf/f
=307/130
=2.36

Inference:

From above table, it can be inferred that the first weightage effectiveness of supply chain
management is Quality and Cost

Result:
Finally the most effectiveness of supply chain management is Quality and Cost

ANALYSIS USING KARL PEARSONS CORRELATION

Correlation analysis is the statistical tool used to measure the degree to which two
variables are linearly related to each other. Correlation measures the degree of association
between two variables.
Null hypothesis (H0):
There is positive relationship between the satisfaction of current public
policy regarding SCM and the retailers opinion about the service which is offered by the
company
Alternate hypothesis (H1):
 There is negative relationship between the satisfaction of current public
policy regarding SCM and the retailers opinion about the service which is offered by the
company

Particulars SATISFACTION RETAILERS R1 R2 R1 *

OF CURRENT OPINION ABOUT R2
PUBLIC SERVICE WHICH
POLICY IS OFFERED BY
REGARDING AVR
SCM (X) MANUFACTURERS
(Y)

Very Satisfied 76 44 1 2 2
Satisfied 42 52 2 1 2
Somewhat 9 34 3 3 9
satisfied
Not at all 03 0 4 4 16
Satisfied
Total 130 130 29

N=130 X=10 Y=10 XY=29 =100

= 0.696
INFERENCE:
Since r is positive, there is positive relationship between the satisfaction of
current public policy regarding SCM and the retailers opinion about the service which is
offered by the company

FINDINGS:

Therefore most of the respondents said that the supply chain management having
all the address of the developer branches of the company.

33% of the respondents are said that the working strategies of supply chain
management department on the basis of the current programs is outstanding.

75% of the respondents said that the company has the sufficient transportation in
SCM department
 Majority of the respondents are said according to the current growth process of
the organization, operational activities needs much attention and progress to boost
the production.

Most of the respondents said the supply chain department is facing problem in
taking care of the raw material while test of packaging

Majority of the respondents of the respondents are rating delivery activity of the
department is good.

Most of the respondents said that the there a case recorded by the supply chain
department in which the production department complained late delivery of raw
materials.

Maximum number of the respondents said that of the respondents said that
company has been in operation less than 10 years.
82% of the respondents said that the company does not have the idea to launch the
new product
Most of the respondents said that the company has the plans in place to increase
company revenue.
Most more than half of the respondents said that company successfully managing
its supply chain.
Most of the respondents said that company has to keep close relationship with
customers in order to manage its supply chain better.
37% of the respondents said that supply chain management (scm) system which is
used to support supply chain management
Most of the respondents said that satisfaction of current public policy regarding
scm is very satisfied
Therefore most of the respondents said that they receiving the product without
any damage.
More than half of the respondents said that retailers opinion about service which
is offered by AVR manufacturers is very much satisfied
Most of the respondents said that try with a new service provider, if they offered
with discount.

Most of the respondents said that AVR manufacturers meets their current
performance expectation.
 Most of the respondents said that the products are delivered on time to the
supplier.

98% of the respondents said that the AVR manufacturers is available in the market
in a sufficient manner.

Most of the respondents rating that supplier performance is good.

Majority of the respondents said that Supplier is friendly with the customers.

Most of the respondents said that order placement to the member supply chain is
done through telephone.

Majority of the respondents said that Tracking of goods is done by

Communication channel.

78% of the respondents said the company have its own logistic

47% of the respondents said that Banglore operation company use the all types
distribution channel.

Most of the respondents said that quality and cost is the best criteria for the
effectiveness of supply chain.

SUGGESTION:

It is suggested that company can improve the working strategies of supply chain
management department on the basis of the current programs.

Company can improve the transportation facility of supply chain department.

It is suggested that company can concentrate more on the operational activities.

It is suggested that company can take steps to reduce the problems in testing of
packaging area.

Some customer are unhappy about the delivery activity of the department. So
company can take some steps to improve the delivery activity.

Company can take steps to reduce the damage of goods.

 It is suggested that company can take steps to train the suppliers regarding how to
behave with customers.

CONCLUSION

Customer Focus on supply chain management will help to learn customer buying
attitude. In AVR Manufacturers not get much more awareness from public, so kindly to
improve the advertisements and other improvements process.
The study has been conducted at AVR Manufacturers. A survey was conducted
with 130 respondents in the company by using questionnaire to collect the informations
from the respondents. After gathering the informations, the researcher has analysis the
data by interpreting the various tools. Based on the analysis, the researcher has given
some suggestions to the management to develop customer focus on supply chain
management. Also SCM helps the management to reduce the logistics cost and proper
utilization of warehouse space.
 APPENDIX
BIBLIOGRAPHY

[1.] Cooper, M. C., and L. M. Ellram. 1993. Characteristics of Supply Chain

Management and the Implications for Purchasing and Logistics Strategy. The
International Journal of Logistics Management, 4, 2, 13-24.
[2.] Deuermeyer, B. and L. B. Schwarz. 1981. A Model for the Analysis of System
Service Level in Warehouse/ Retailer Distribution Systems: The Identical Retailer
Case, in: L. B. Schwarz (ed.), Studies in Management Sciences, Vol. 16--Multi-
Level Production / Inventory Control Systems, North-Holland, Amsterdam, 163-
193.
 [3.] Geoffrion, A., and G. Graves. 1974. Multicommodity Distribution System Design
by Benders Decomposition. Management Science, 29, 5, 822-844.
[4.] Geoffrion, A., and R. Powers. 1993. 20 Years of strategic Distribution System
Design: An Evolutionary Perspective, Interfaces. (forthcoming)
[5.] Houlihan, J. B. 1985. International Supply Chain Management. International
Journal of Physical Distribution and Materials Management, 15, 1, 22-38.
[6.] Lee, H. L., and C. Billington. 1992. Supply Chain Management: Pitfalls and
Opportunities. Sloan Management Review, 33, Spring, 65-73.
[7.] Lee, H. L., and C. Billington. 1993. Material Management in Decentralized
Supply Chains. Operations Research, 41, 5, 835-847.
[8.] Masters, J. M. 1993. Determination of Near-Optimal Stock Levels for Multi-
Echelon Distribution Inventories. Journal of Business Logistics, 14, 2, 165-195.
[9.] Schwarz, L. B. 1981. Introduction in: L. B. Schwarz (ed.), Studies in
Management Sciences, Vol. 16--Multi-Level Production / Inventory Control
Systems, North-Holland, Amsterdam, 163-193.
[10.] Stenross, F. M., and G. J. Sweet. 1991. Implementing an Integrated Supply
Chain in Annual Conference Proceedings, Oak Brook, Ill: Council of Logistics
Management, Vol. 2, 341-351.
[11.] Bernd Huber, Edward Sweeney, (2007), The need for wider supply chain
management adoption: empirical results from Ireland
QUESTIONNAIRE:
1. Is supply chain management having all the address of the developer branches of
the company?
a)Yes b)No

2. Rate the working strategies of supply chain management department on the basis
of the current programs?
a) Outstanding b) Excellent
c) Good d)Average

3. Is the supply chain management department is having sufficient transportation?

a)Yes b) Not sufficient

4. According to the current growth process of the organization, which of the

following needs much attention and progress to boost the production?
a) Operational activities b)Tactical activities
c) Current programming strategies

5. Choose the right option, where the supply chain department is facing problem in
taking care of the raw material?
a) During storage b) Packaging
c) Testing of packaging d) Evaluation of defective raw material

6. How do you rate the delivery activity of the department?

a) Excellent b) Very effective
c) Good . d) Average

7. Is there any case recorded by the supply chain department in which the
production department complained late delivery of raw materials?
a) Yes b) No

8. How long has the company been in operation?

a)Less than 10years b)10-20years c) More than 20years

9. Does the company plan to launch new products?

a)Yes b)No

10. Are their plans in place to increase company revenue?

a)Yes b)No
11. How successful do you think is your company in managing its supply chain in
general?

a) Very Successful b) Successful

c) Somewhat Successful d) Not at all Successful

12. Which of the following you think that your company needs to do in order to
manage its supply chain better?

a) Close partnership with suppliers b) Close partnership with customers

c) Outsourcing d) Supply Chain Benchmarking
13. What types of systems are currently in use in your company to support Supply
Chain Management?
a) Material Requirements Planning (MRP) b)Manufacturing Resources Planning
(MRPII)
c) Enterprise Resource Planning (ERP) d)Supply Chain Management (SCM)

14.What types of systems do you plan to implement in the near future (within the next 2
years)?
a) Material Requirements Planning (MRP) b)Manufacturing Resources Planning
(MRPII)
c) Enterprise Resource Planning (ERP) d)Supply Chain Management (SCM)

15. How satisfied are you with the current public policy regarding SCM?
a) Very Satisfied b) Satisfied

c) Somewhat satisfied d)Not at all Satisfied

16. Are you receiving the products without any damage?

a)Yes b)No

17. Are you made aware of the new / promotional schemes provided by the AVR
Manufacturers?

a)Yes b)No

18. Retailers opinion about service provided by AVR Manufacturers?

a) Very Satisfied b) Satisfied

c) Somewhat satisfied d) Not at all Satisfied

19. Do you wish to try with a new service provider, if offered with discount?

a)Yes b)No

20. AVR Manufacturers meets Your Current Performance Expectation

a) Good b) Above average
c) Below average d) Poor

21. Whether the products are delivered on time to the supplier?

a) Yes b) No
22. Whether The AVR Manufacturers Is Available Sufficient In Market?

a) Yes b) No
23. Rate the suppliers performance?
a) Good b) Above average
c) Below average d) Poor

24. Whether Supplier is friendly with the customers?

a) Yes b) No

25. Order placement to the members supply chain is done by-

a) Phone c) Web service

b) Forecasting d) Personal

26. Tracking of goods is done by

a) Communication channel b) Web enabled system c) GPRS system

27 Does the company have its own logistics?

a) Yes b) No

28. What are the different distributions network you are using now(Chennai operation)

Distribution channel Currently using

Air ways
Road ways
Waterways
All the above

29. On what criteria do you judge the effectiveness of supply chain in your
company?

a)Timely deliver b)Quality and cost c)Availability of stock

d)Less damage of goods e)All the above